Micro: Market System Quiz
In the circular flow model, producers - and households spend income on goods and services sold in resources markets - acquire productive assets provided by households in resource markets - sell goods and services in the resource markets - spend earnings from resource sales on goods and services in the product market.
- acquire productive assets provided by households in resource markets
Which of the following are legal forms of business? - Sole Proprietorship - Partnership - Corporation - All of the above
All of the above
The __________ demonstrates the roles played by households and firms in the market system - production possibilities frontier - circular flow model - business cycle - theory of comparative advantage
circular flow model
The income earned by those who supply _______ is called wages - labor - entrepreneurship - natural resources - capital
labor
The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade. - market - collective - trade-off - cooperative
market
When you purchase a new pair of jeans you do so in the - input market - product market - resource market - factor market
product market
Which of the following best describes the allocative function of government? - provision of public goods and services - creation of entitlement programs, such as social security and Medicare - implementation of fiscal policy - all of the above
provision of public goods and services
Households __________ final goods and services in the ____________ market. - sell; factor - purchase; product - purchase; factor - sell; product
purchase; product
Land resources used in production are made available in the - resource market - government market - product market - goods and services market
resource market
Households - sell their labor services in the resource market - purchase goods in the resource market - sell goods in the product market - have no influence on circular flows
sell their labor services in the resource market
Which of the following are separate flows in the circular flow model? - the flow goods and the flower of services - the flow of income received by households and the flow of tax paid by households - the flow of income earned from resource provision and the flow of expenditures on goods and services purchased. - the flow of costs and the flow of revenue
the flow of income earned from resource provision and the flow of expenditures on goods and services purchased.
Which of the following is a flow in the circular flow model? - the flow of revenue received by firms and the flow of payments to resource owners - the flow of income earned by firms and the flow of expenditures earned by household - the flow of goods and services from households to firms - the flow of profit and the flow of revenue
the flow of revenue received by firms and the flow of payments to resource owners